Getting a car loan with bankruptcy is very difficult. This applies despite the fact that the loan amount is offset by a value and the car can be confiscated or attached at any time. Anyone who is in private or regular bankruptcy proceedings has proven that they have not been able to meet their current financial obligations of a private or business nature in the past and are therefore unsuitable for borrowing again.
However, there are several exceptions. If the car dealer knows his customer well, does not provide private credit checker information and has a regular income, there is a good chance of getting a car loan in the event of bankruptcy. The same applies in the event that the insolvent borrower contacts a foreign lender.
In recent times, it has become increasingly common for a car to be financed not by a bank loan but by a dealer loan. The advantages are apparent. This means that the purchase and financing of a new or used car can be carried out under one roof, thus saving unnecessary travel. Even if many car dealers insist on a regular and sufficiently high income, the car is the most important loan security.
This is the main reason that a dealer loan is much easier to obtain than a bank loan. If you want to get a car loan at bankruptcy, there are still some basic things to consider. During bankruptcy, it is forbidden to make new debts that the borrower knows that he cannot get out of his current, unencumbered income. A car loan should therefore only be taken out if the payment can be guaranteed with the greatest possible certainty.
Most foreign banks, which also grant their loans to German customers, do not provide private credit checker information and therefore do not need to know anything about the bankruptcy. Here too, however, the borrower should exercise extreme caution. Although a car is an essential everyday item that in many cases is needed to get to work or find a new job, a car loan should only be taken out in the event of bankruptcy if the loan installments can be paid regularly and on time.
Auto loans from the job center
Many people who are insolvent have been using reform for a long time. If they do not have a car and live in an area where it is very difficult to find work again, the job center could possibly finance them with a car loan in the event of bankruptcy. However, this will only be a relatively small sum of money, which is only sufficient to finance a used car. The repayment is regulated individually and in most cases takes place by offsetting the current reform service.